Figure 1 Universe Industries Has Two Divisions: the Haley Division and the and the Comet

Figure 1
Universe Industries has two divisions: the Haley Division and the Comet Division. Information about a component that the Haley Division produces is as follows:
The Haley Division can produce up to 5,000 components per year. The Comet Division needs 200 units of the component for a product it manufactures.
-Refer to Figure 1 above. If the selling division did NOT have excess capacity, the minimum transfer price the selling division would be willing to accept is

A) £120
B) £75
C) £50
D) £30

Correct Answer:

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